Objectives Of Management Accounting

Objectives Of Management Accounting:

The basic objective of Management Accounting is to assist the management in carrying out its duties efficiently.

The objectives of Management Accounting are:

1. The compilation of plans and budgets covering all aspects of the business e.g., production, selling, distribution research and finance.
2. The systematic allocation of responsibilities for implementation of plans and budgets.
3. The organization for providing opportunities and facilities for performing responsibilities.
4. The analysis of all transactions, financial and physical, to enable effective comparisons to be made between the forecasts made and actual performance.
5. The presentations to management, at frequent intervals, of up-to-date information in the form of operating statements.
6. The statistical interpretation of such statements in a manner which will be of utmost assistance to management in planning future policy and operation.